Union Jack Oil (UJO ), a UK-focused onshore conventional explorer, announced it has passed US$12m of revenues from its flagship Wressle project, located within licenses PEDL180 and PEDL182 in North Lincolnshire.
Union Jack has reached $12m since re-commencement of production at Wressle on 19 August 2021. The Wressle-1 well continues to produce under natural flow with zero water cut. Union Jack currently holds a 40% interest in Wressle.
Site upgrades are ongoing and a gas monetisation plan is in place for both Ashover Grit and Penistone Flags reservoirs.
Executive Chairman David Bramhill commented: "The revenues of in-excess of US$12,000,000 from the Wressle development continue to bolster the Company's Balance Sheet.
Since the last production update, another impressive production performance from the Wressle-1 well has been recorded and the trend as seen throughout 2022 and the start of 2023 remains positive.
Cash balances are expanding significantly on a monthly basis, and we are funded for G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months."
View from Vox
Like clockwork, revenues from Union Jack's Wressle asset continue to climb, now at US$12m after reaching US$11m in mid-November, and US$10m in early October. This comes 16 months after operations at Wressle recommenced on 19 August 2021. Today's milestone further solidifies Wressle's status as one of the most productive conventional-producing UK onshore oilfields, set to become second only to Perenco's Wytch Farm.
Union Jack continues to be cash flow positive covering all G&A, OPEX, and contracted or planned Capex costs, including drilling activities or work programme commitments for at least the next 12 months. Union Jack remains debt free with unaudited revenues from 1 January 2022 to date in excess of £8.4m.
As of 2 January 2023, UJO's cash balances stood at over £9.9m, following a maiden special dividend totaling over £900k in December 2022, and recent Wressle site upgrades of £250k net.
Union Jack's cash balance on 2 January stood at £9.9m, keeping the company's expenses covered through 2023, including G&A, Opex, and contracted or planned Capex costs.
The company's cash balance remains strong despite distributing a maiden dividend in December of 0.8p/share (over £900k in total) and continuing site upgrades at Wressle.
UJO shares are already up 3.25% YTD and up 88.7% in the past 12 months, as Wressle continues to outperform and West Newton shapes up to be a second home run for the company.
The company has also announced a share buyback programme that should result in an increase in EPS and improve UJO shares' trading liquidity over time. Today UJO purchased 100,000 of its ordinary shares at 26.85p, adding to 700,000 shares already purchased to date.
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